Developers

EDF Energy, working in partnership with CGN, is currently the only developer with active plans to build new nuclear plant in the UK.

Under the UK system, developers act as the licensees for nuclear new build, with responsibility for arranging the financing, planning and regulatory approval for new plant.

The UK government is taking a market-led approach to nuclear new build: all new plant will be wholly financed and constructed by the private sector, with no direct subsidy. This means that each developer’s decision to invest will depend on economic conditions and financial factors such as capital costs.

EDF entered the UK nuclear generation market in 2009 with its acquisition of British Energy, which operated eight formerly state-owned nuclear power stations. UK utility group Centrica has a 20 per cent stake in the existing stations, but withdrew from a proposed collaboration on new build in February 2013.

EDF is operating through a UK subsidiary called Nuclear New Build Generation Ltd (NNB Gen Co). The venture is proposing to build two EPR generators at Hinkley Point, Somerset, followed by another two at Sizewell, Suffolk, with a total capacity of 6.4GWe.

EDF made a positive final investment decision on Hinkley Point C in July 2016. The UK government subsequently confirmed its support and signed contracts in September 2016.

The deal follows the commercial terms agreed by EDF Energy and the UK government in October 2013. Electricity from Hinkley Point C will receive a guaranteed price under the contract for difference (CFD) regime which also applies to windfarms and other low-carbon sources. The price is £92.50/MWh, linked to the consumer price index. If EDF confirms that it will also build new capacity at Sizewell, that price is reduced to £89.50/MWh to reflect economies of scale.

The procurement process for Hinkley and Sizewell is overseen by NNB Gen Co, and operated by EDF Procurement in Paris. Early requests have been for large packages of work or the supply of specialised plant. Smaller suppliers are unlikely to prequalify on their own, and will need to form consortia or supply agreements with higher-tier suppliers.

EDF has named seven top-tier preferred bidders to the project:

Bouygues TP/Laing O’Rourke – civil works.

Balfour Beatty (replaced Costain in August 2017) – marine work.

Alstom Energy (now part of GE) – turbines.

Areva – instrumentation & control, nuclear steam supply system, fuel.

Balfour Beatty Bailey – electrical work.

Cavendish Boccard Nuclear – mechanical pipework and installation.

Actan – HVAC.

Other preferred bidders include:

Rolls-Royce – heat exchangers, emergency diesel system.

Rolls-Royce/Nuvia – reactor coolant processing systems.

Weir – large pumps for cooling water.

Clyde Union (now part of SPX Flow) – main pumps for feedwater system and cooling water system.

EDF will work with CGN to deliver Hinkley Point C, with CGN taking a 33.5 per cent investment share. The two companies have formed a joint venture company, General Nuclear System Ltd, to manage the project, with CGN investing through its UK subsidiary General Nuclear International Ltd. The two groups also propose to collaborate on deploying EPRs at Sizewell C (80 per cent EDF; 20 per cent CGN), and the Chinese Hualong HPR1000 reactor at Bradwell in Essex (33.5 per cent EDF; 66.5 per cent CGN).

Work is already underway at Hinkley Point C on supporting infrastructure including underground galleries. First concrete for the reactor building is expected around mid-2019, with first electricity generation from the mid-2020s. The second reactor is expected to complete around two years after the first.

EDF aims to begin construction on Sizewell C in 2021, with construction to progress five years behind Hinkley Point C. CGN aims to complete Bradwell B in 2030.

Horizon Nuclear Power

Horizon Nuclear Power is owned by Hitachi Ltd of Japan. Horizon was founded as a 50/50 joint venture between E.ON UK and RWE npower, and acquired land and agreed connections for Wylfa, Anglesey, and Oldbury, Gloucestershire, with plans to build around 3GWe of new capacity at each site.

In January 2019, Hitachi announced that it was suspending development of both sites, after being unable to agree financing and commercial arrangements with the UK government.

Hitachi acquired Horizon in November 2012, and proposed to build two of its own 1300MWe advanced boiling water reactor (ABWR) plants at each site, beginning with two at Wylfa. The ABWR completed the generic design assessment (GDA) process in December 2017.

Hitachi estimated that around 60 per cent by value of the first reactor would be sourced in the UK, with more local input into later plant. Hitachi signed agreements with Rolls-Royce and Babcock International to plan and deliver the programme, and intended to establish an assembly facility for its modular construction technology in the UK.

NuGen

NuGeneration Ltd (NuGen) was established as a joint venture between GDF Suez and Iberdrola. It acquired land at Sellafield, Cumbria, with the intent of building up to 3.8GWe new capacity. Nugen named its project Moorside.

In 2014, Toshiba acquired all of Iberdrola’s 50 per cent stake plus 10 per cent from GDF Suez (now Engie), which will remain as operator. In 2017, Engie transferred its remaining 40 per cent stake, leaving Toshiba as sole owner of NuGen. Toshiba subsequently launched a strategic review of its ownership of NuGen and, in November 2018, announced that it was liquidating NuGen after failing to secure a buyer.

The Moorside site remains a government-designated development site for nuclear new build.